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MIRA INFORM REPORT
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Report No. : |
500551 |
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Report Date : |
27.03.2018 |
IDENTIFICATION DETAILS
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Name : |
MITSUBISHI GAS CHEMICAL CO INC |
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Registered Office : |
Mitsubishi Bldg, 2-5-2 Marunouchi Chiyodaku Tokyo 100-8324 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
Apr 1951 |
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Com. Reg. No.: |
0100-01-008768 (Tokyo-Chiyodaku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturing of Natural Gas Chemicals, Xylene, Methanol, Other |
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No. of Employees : |
2,323 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Maximum Credit Limit : |
Yen 25,705.1 Million |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
JAPAN - ECONOMIC OVERVIEW
Over the past 70 years, government-industry cooperation, a strong work
ethic, mastery of high technology, and a comparatively small defense allocation
(slightly less than 1% of GDP) have helped Japan develop an advanced economy.
Two notable characteristics of the post-World War II economy were the close
interlocking structures of manufacturers, suppliers, and distributors, known as
keiretsu, and the guarantee of lifetime employment for a substantial portion of
the urban labor force. Both features have significantly eroded under the dual
pressures of global competition and domestic demographic change.
Measured on a purchasing power parity basis that adjusts for price
differences, Japan in 2017 stood as the fourth-largest economy in the world
after first-place China, which surpassed Japan in 2001, and third-place India,
which edged out Japan in 2012. For three postwar decades, overall real economic
growth was impressive - a 10% average in the 1960s, 5% in the 1970s, and 4% in
the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely
because of the aftereffects of inefficient investment and the collapse of an
asset price bubble in the late 1980s, which entailed considerable time for
firms to reduce excess debt, capital, and labor. Modest economic growth
continued after 2000, but the economy has fallen into recession four times
since 2008.
Japan enjoyed an uptick in growth in 2013 on the basis of Prime Minister
Shinzo ABE’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics”
- of monetary easing, “flexible” fiscal policy, and structural reform. Led by
the Bank of Japan’s aggressive monetary easing, Japan is making modest progress
in ending deflation, but demographic decline – a low birthrate and an aging,
shrinking population – poses a major long-term challenge for the economy. The
government currently faces the quandary of balancing its efforts to stimulate
growth and institute economic reforms with the necessity of addressing its
sizable public debt, which stands at 235% of GDP. To help raise government
revenue, Japan adopted legislation in 2012 to gradually raise the consumption
tax rate. However, the first such increase, in April 2014, led to another
recession, so Prime Minister ABE has twice postponed the next increase, now
scheduled for October 2019. Structural reforms to unlock productivity are seen
as central to strengthening the economy in the long-run.
Scarce in critical natural resources, Japan has long been dependent on
imported energy and raw materials. After the complete shutdown of Japan’s
nuclear reactors following the earthquake and tsunami disaster in 2011, Japan's
industrial sector has become even more dependent than before on imported fossil
fuels. However, ABE’s government is seeking to restart nuclear power plants
that meet strict new safety standards and is emphasizing nuclear energy’s
importance as a base-load electricity source. In August 2015, Japan successfully
restarted one nuclear reactor at the Sendai Nuclear Power Plant in Kagoshima
prefecture, and several other reactors around the country have since resumed
operations; however, opposition from local governments has delayed several more
restarts that remain pending. Reforms of the electricity and gas sectors,
including full liberalization of Japan’s energy market in April 2016 and gas
market in April 2017, constitute an important part of Prime Minister Abe’s
economic program.
In October 2015, Japan and 11 trading partners reached agreement on the
Trans-Pacific Partnership (TPP), a pact that had promised to open Japan's
economy to increased foreign competition and create new export opportunities
for Japanese businesses. Japan was the first country to ratify the TPP in
December 2016; the United States signaled its withdrawal from the TPP in
January 2017, and in November 2017 the remaining 11 countries agreed on the
core elements of a modified agreement, which they renamed the Comprehensive and
Progressive Agreement for Trans-Pacific Partnership (CPTPP).
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Source
: CIA |
Company
name & address
MITSUBISHI GAS CHEMICAL CO INC
REGD NAME: Mitsubishi
Gas Kagaku KK
MAIN OFFICE: Mitsubishi
Bldg, 2-5-2 Marunouchi Chiyodaku Tokyo 100-8324 JAPAN
Tel:
03-3283-5000 Fax: 03-3287-0833
E-Mail address: info@mgc.co.jp
ACTIVITIES: Mfg
of natural gas chemicals, xylene, methanol, other
BRANCHES: Osaka,
Nagoya, Niigata, Mie, Okayama, Kanagawa, Saga, other (Tot 9)
OVERSEAS: Shanghai,
USA, Germany, Singapore, Thailand (--subsidiaries)
FACTORIES: Niigata,
Yokkaichi, Kashima, Mizushima, Naniwa, Yamagata, Saga;
OVERSEAS: Saudi Arabia, Brunei, Venezuela, China
(--mfg factories)
CHIEF EXEC: TOSHIKIYO
KURAI, PRES
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 556,480 M
PAYMENTS REGULAR CAPITAL Yen 41,970 M
TREND SLOW WORTH Yen
428,091 M
STARTED 1951 EMPLOYES 2,323
COMMENT: MFR OF NATURAL GAS CHEMICALS, XYLENE, METHANOL, OTHER. FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS
MAX CREDIT LIMIT: YEN 25,705.1 MILLION, 30 DAYS NORMAL TERMS
HIGHLIGHTS
The subject firm started from the utilization natural gas produced in Niigata Prefecture & succeeded in Japan’s first synthesis of methanol & ammonia. Made a new start in 1971 through the merger between Mitsubishi Edogawa Chemical & Japan Gas Chemical. Boasts several products of aromatic chemicals with high shares in niche markets. Also produces functional resins such as polycarbonate, & electronic materials for semiconductor-related products. Participates in overseas JVs for methanol production in resource countries such as Saudi Arabia & Venezuela, which contribute to earnings through equity profits. Staying away from the alliance of chemical-related firms in the Mitsubishi Chemical Group.
FINANCIAL
INFORMATION
The sales volume for Mar/2017 fiscal term amounted to Yen 556,480 million, a 6% fall from Yen 593,502 million in the previous term. The recurring profit was posted at Yen 62,378 million and Yen 47,958 million net profit, respectively, compared with Yen 45,432 million recurring profit and Yen 34,134 million net profit, respectively, a year ago.
For the current term ending Mar 2018 the recurring profit is projected at Yen 57,000 million and the net profit at Yen 44,000 million, respectively, on a 4% rise in turnover, to Yen 580,000 million.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 25,705.1 million, on 30 days normal terms.
REGISTRATION
Date
Registered: Apr 1951
Regd
No.: 0100-01-008768
(Tokyo-Chiyodaku)
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 984,856,000
shares
Issued: 483,478,398
shares
Sum: Yen
41,970 million
Major shareholders (%): Company’s Treasury Stock (10.7), Japan Trustee Services T (3.8), Nippon Life Ins (3.6), Master Trust Bank of Japan T (3.5), Meiji Yasuda Life Ins (3.4), MUFG (2.2), Norin Chukin Bank (2.0), Asahi Glass (2..0), Bank of New York Mellon 140044 (1.5), Japan Trustee Securities T5 (1.4); foreign owners (33.6)
No.
of shareholders: 15,090
Listed on the S/Exchange (s) of: Tokyo
Managements: Kazuo Sakai, ch; Toshikiyo Kurai, pres; Kunio Kawa, s/mgn dir; Kenji Inatori, s/mgn dir; Masahiro Jono, mgn dir; Yasuhiro Sato, mgn dir; Masashi Fujii, mgn dir; Susumu Yoshida, mgn dir; Masamichi Minakami, mgn dir; Masato Inari, mgn dir
Nothing
detrimental is known as to the commercial morality of executives.
Related companies: MGC Filsheet Co, MGC Electro Techno Inc,
AG Int’l Chemical, Eiwa Chemical
Ind, other.
OPERATION
Activities: Manufactures
xylene, methanol, & other industrial chemicals:
(Sales Breakdown by Divisions): Natural Gas Chemicals (26%); Aromatic Chemicals (34%); Functional Chemicals (31%); Specialty Chemicals (9%).
Overseas Sales Ratio 53%:
(Mfg products): organic/inorganic chemicals, petroleum-derived chemicals, chemical fertilizers, agro chemicals, feeds, feed additives, synthetic resins, synthetic rubber & other high molecular polymers, dyes, pigments, paints & adhesives, pharmaceutical products, quasi-drugs, biochemical products, food & food additives, detergents, bleaches, gas absorbers, civil-engineering & construction materials, ceramic products, information device, components & apparatus, others
Clients: [Mfrs,
wholesalers] Mitsubishi Corp, Itochu Chemical Frontier, Daicel Chemical Ind,
Sojitz Corp, Mitsubishi Gas Chemical America, Mitsubishi Engineering Plastics,
Tokyo Shokai Ltd, other
No. of accounts:
1,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] JX Nippon Oil & Energy Corp, Shell Chemicals Japan, Mitsubishi
Chemical, Mitsubishi International Corp, Brunei Methanol Co, MGC Electro
Techno, other
Payment record: Regular
Location: Business area in Tokyo. Office premises at the caption address are owned by the group and maintained satisfactorily.
Bank References:
MUFG (H/O)
Mitsubishi UFJ Trust Bank (H/O)
Relations: Satisfactory
FINANCES
(In Million Yen)
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Terms Ending: |
31/03/2018 |
31/03/2017 |
31/03/2016 |
31/03/2015 |
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Annual
Sales |
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580,000 |
556,480 |
593,502 |
529,570 |
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Recur.
Profit |
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57,000 |
62,378 |
45,432 |
43,034 |
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Net
Profit |
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44,000 |
47,958 |
34,134 |
44,381 |
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Total
Assets |
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741,639 |
739,582 |
790,381 |
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Current
Assets |
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326,674 |
341,237 |
372,166 |
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Current
Liabs |
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188,426 |
214,676 |
225,068 |
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Net
Worth |
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428,091 |
376,945 |
377,241 |
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Capital,
Paid-Up |
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41,970 |
41,970 |
41,970 |
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Div.Ttl
in Million (¥) |
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6,896 |
6,694 |
5,871 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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4.23 |
-6.24 |
12.07 |
-0.95 |
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Current Ratio |
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.. |
173.37 |
158.95 |
165.36 |
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N.Worth Ratio |
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.. |
57.72 |
50.97 |
47.73 |
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R.Profit/Sales |
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9.83 |
11.21 |
7.65 |
8.13 |
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N.Profit/Sales |
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7.59 |
8.62 |
5.75 |
8.38 |
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Return On Equity |
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.. |
11.20 |
9.06 |
11.76 |
Forecast (or
estimated) figures for the 31/03/2018 fiscal term.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 64.90 |
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1 |
INR 91.87 |
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Euro |
1 |
INR 80.25 |
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YEN |
1 |
INR 0.61 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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NIS |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.